Outsourced Nonprofit Accounting
Introduction
Outsourced Nonprofit Accounting
Accounting for nonprofit organizations has unique challenges, from managing grants and donor-restricted funds to meeting rigorous compliance requirements. Accounting for nonprofit organizations needs specialized knowledge and careful record-keeping to maintain your tax-exempt status and satisfy donors.
For many nonprofits, keeping on top of financial management takes up valuable time that could better be used to focus on the organization’s mission. Outsourcing accounting services can provide expert help to streamline and manage your finances so that your team has more headspace to focus on improving your corner of the world.
“Scrubbed has helped me in various ways; specifically, I don’t have to worry about the accounting side of the house, which allows me to focus on more strategic tasks.”
Satoshi Steimetz, CFO of Playworks
What is Outsourced Accounting and Finance?
Outsourcing provides you with access to experienced accountants who are knowledgeable about the nonprofit sector and know how to handle donor-restricted funds, follow GAAP and other nonprofit accounting standards, and meet the reporting requirements for grants and government support.
Because outsourcing is scalable and flexible, you get the services and support you require without the expense or difficulty of hiring or finding internal specialists or overburdening an already busy internal team.
What Are the Key Benefits of Outsourcing Accounting for Nonprofits?
- Specialized Expertise in Nonprofit Accounting: Outsourced accounting teams bring specialized knowledge that helps nonprofit organizations navigate complex financial tasks and ensure compliance with industry standards.
- Cost Efficiency: Hiring a full-time in-house accounting team can be costly, especially for a small or mid-sized nonprofit. Outsourcing your accounting can free up resources for programs and initiatives.
- Advanced Technology and Tools: Outsourced accounting firms tend to use the latest accounting software and technology that may be unaffordable for smaller organizations. These tools help nonprofits make data-driven decisions and manage their finances more efficiently.
- Flexible and Scalable Support: New grants or donations and seasonal campaigns are just some factors that can change nonprofit activity levels throughout the year. Outsourcing your accounting allows you to scale support up or down as needed so you can quickly adapt the level of services to your changing needs.
- Increased Focus on Core Mission: Many day-to-day accounting tasks can be time-consuming and take the staff and leadership away from core activities like fundraising, program development, and community impact. Outsourcing these responsibilities helps ensure the organization has strong financial stewardship while staff and leadership can focus on other things.
What Services Does Outsourced Nonprofit Accounting Include?
Outsourced accounting services can cover everything from day-to-day tasks like bookkeeping to more complex requirements like preparing audit-ready financial statements and specialized donor reporting systems to ensure precise tracking of restricted funds and grant compliance.
At Scrubbed, our services include:
Bookkeeping
Grant Management
Budgeting and Forecasting
Audit Preparation
Supporting smooth, stress-free audits with organized documentation.
Form 990 Filing
For a complete list of services, visit our Nonprofit Accounting page.
What Should Nonprofits Look for in an Outsourced Accounting Partner?
When choosing an outsourced accounting partner, the goal is to find one that will manage your financial operations effectively, support your nonprofit’s mission, and help you achieve long-term sustainability.
Here are some considerations to help you choose a partner that will meet your organization’s needs:
What Are Some Best Practices For Working With An Outsourced Nonprofit Accounting Team?
These are some best practices to create a seamless onboarding process and help build a strong, productive partnership between your nonprofit organization and an outsourced accounting team:
Establish Communication Channels and Expectations: Schedule regular meetings to discuss objectives, review financials, and ensure alignment. The outsourcing relationship works best when both sides express their needs openly and establish defined roles early in the partnership.
Maintain Transparency: Don’t hesitate to ask questions if something is unclear. A good, outsourced team will happily explain their processes and rationale. Equally, share as much information as you can with your outsourced team.
Cultivate a Long-Term Relationship: Treat the outsourced team as a strategic partner rather than just a service provider. A collaborative approach fosters a stronger, long-term relationship. Share your goals and challenges so they can better align their services with your needs.
Make Use of Their Expertise: Your outsourced accounting team will have specialized knowledge and experience working with different nonprofit organizations. They can offer valuable insights and advice beyond basic accounting tasks.
Performance Measurement: Conduct periodic reviews to assess whether your outsourced accounting partner is meeting agreed-upon metrics. Give (and ask for) constructive feedback whenever necessary.
How Does Outsourcing Improve Donor Confidence?
Outsourcing your accounting services helps show donors that you are committed to accountability and the proper stewardship of funds. This level of transparency helps build trust with donors, fostering stronger relationships and encouraging ongoing support for the organization’s mission.
What Results Can You Expect When You Partner with an Outsourced Accounting Team?
Conclusion
Outsourced accounting and finance services offer significant benefits for nonprofit organizations, enabling them to improve financial visibility, streamline processes, and allocate resources more effectively. By partnering with an experienced team, nonprofits can access specialized expertise in grant management, compliance, and donor reporting, allowing them to focus on their mission and impact.
Scrubbed brings together a dedicated team of nonprofit accounting specialists with US Certified Nonprofit Accounting credentials. This expertise translates into a deep understanding of tax-exempt organization requirements, ensuring transparency and accountability in your financial operations. Our collaborative approach helps simplify complex financial tasks, giving you the confidence to focus on what matters most—serving your community and advancing your mission. Let us help you unlock the full potential of your nonprofit, empowering you to achieve long-term sustainability and growth.
Contact us today to learn how Scrubbed can support your nonprofit’s success.